Documenting your Possessions

When applying for a mortgage to buy a home, you will be asked to declare all of your possessions in order to verify your down payment. These possessions are usually described as cars, antiques, fine art collections, boats and everything you own excluding Real Estate. Mortgage application frequently asks you to estimate the value of all items you own and have declared on. If you apply for a larger loan amount you will have to provide as much details as possible on your personal assets. This procedure is especially done for lenders to ensure that your personals are equal to your income. Lenders give special attention to this particular stage and if your documented assets don’t match your income, the underwriter will take a more meticulous look to your mortgage application. However, you may not be required to declare the value of your personal assets unless you need to sell them to make the down payment. If you are a first-time homebuyer and have to sell personal assets to make the down payment of the property you want to buy, the verification process can be harder. Lenders become more stricter and detailed about ensuring your funds’ foundation. If you need to sell a valuable asset like a car, make sure to get a copy of the check as well as a receipt when you deposit the money into your bank account. It is highly recommended to not accept cash payments because you will not have any proofs to show.